Updated 1 October 2026. Our September report described additions to a Rs5-per-unit list under STGO22/2026. That report should not be read as a universal rate for steel manufacturers. The later September amendment below changes the framework; check the unit’s classification and current eligibility before using a rate.
Read the original notification with its amendment
The framework starts with SRO1245(I)/2026, dated 31 July. SRO1664(I)/2026, dated 29 September, amends it. The later document distinguishes re-rollers, melters and composite units and includes territory-specific treatment. Rs5 is conditional, rather than an industry-wide charge.
The amendment specifies Rs30 per unit for steel re-rollers and Rs20 for specified FATA/PATA cases. Lower-rate eligibility for relevant melters/composite units depends on imported-scrap or direct EFS sourcing thresholds; new or restarted units have quarterly sourcing conditions. Read the full notification for the category and evidence requirements applicable to your unit.
An illustration, not an eligibility decision
If a unit is eligible for Rs5 for a particular bill and the relevant consumption is 100,000 units, the arithmetic is 100,000 × Rs5 = Rs500,000. This example does not establish eligibility. Using it for a unit subject to another rate would understate the collection.
The September amendment describes collection as advance in nature, adjustable against output tax. Treating it as a final stand-alone tax or an automatic extra charge would miss that distinction. Reconcile the collection with the return and supporting records.
A practical review file for the manufacturer
- Identify the unit type and location; keep the registration and electricity connection details together.
- Match the bill period, meter consumption and rate charged. Keep the original bill, not only a spreadsheet total.
- Prepare sourcing records and the calculation supporting any lower-rate claim for the relevant period.
- Retain production-monitoring and classification evidence where required.
- Document how electricity-bill collection is reconciled with output tax in the return.
If the billed category or rate appears wrong, ask the relevant authority about the correction process and retain the correspondence. Do not silently replace an official bill amount with a preferred estimate.
Related compliance guidance
Use IRIS for the return and keep submission evidence. Our sales-tax scrutiny guide explains a response file, and our August return deadline update separates general and restricted extensions. Those extensions do not determine a manufacturer’s electricity-tax rate.
This replaces repetitive wording that overstated the Rs5 arrangement. Send a document-backed correction through our corrections process. Individual classification and adjustment disputes need professional review.